Maruti Suzuki hits over 4-month low; stock down 18% from January high
The stock price of Maruti Suzuki was quoting lower for the 8th straight trading day on Friday, falling 12 per cent during the period.
 "Maruti Suzuki hits over 4-month low; stock down 18% from January high")
Maruti Suzuki India share price today
Shares of Maruti Suzuki India (MSIL) hit an over four-month low at ₹14,303.70, down 1.4 per cent on the BSE in Friday’s intra-day trade. The stock was trading at its lowest level since August 25, 2025.
The stock price of the automaker quoted lower for the eighth straight trading day, falling 12 per cent during the period. It has corrected 18 per cent from its 52-week high of ₹17,371.60 touched on January 5, 2026.
Why has the stock price of the car maker been under pressure?
For the October to December 2025 quarter (Q3FY26), MSIL reported single digit 3.7 per cent year-on-year (YoY) growth in net profit at ₹3,794 crore, compared to ₹3,659 crore in Q3FY25. The net profit was impacted by a one-time provision of ₹593.9 crore on account of the New Labour Codes. Gross margin contracted quarter-on-quarter (QoQ)/YoY, impacted by discounts and a rise in raw material prices.
However, the company registered its highest-ever quarterly net sales of ₹47,534 crore, up 29.2 per cent YoY from ₹36,802 crore in the same period, a year ago.
Owing to the GST reforms, there was a sharp recovery in the Indian car market, primarily led by the small car segment. The company achieved its highest-ever quarterly domestic sales of 564,669 units as compared to 466,993 units in Q3FY25.
While Q3 margins were impacted by temporary headwinds (commodity inflation, supply constraints & inventory normalization), management demonstrated the strength of operating leverage, with ~190 bps margin support from scale benefits in a single quarter, according to analysts. ALSO READ | CV upcycle gathers pace, but brokerages split on Tata Motors outlook
Brokerages view on MSIL
MSIL’s revenue grew in-line with consensus; however, multiple one-offs impacted its margin leading to a mixed quarter. While Q3FY26 earnings before interest (EBIT) margin was marred by one-offs, analysts at BNP Paribas India see material margin improvement through scale and one-off reversals, which coupled with strong volume growth offers solid earnings growth outlook.
The prices of steel and precious metals have increased over the last few months which could be a margin headwind. MSIL aims to take calibrated calls on its hedging to commodities; however, in the event of volatile commodity prices the company monitors the economic viability of hedging such commodities. Unlike most of its automotive peers, MSIL has a single business operation.
“We derive comfort from MSIL's aggressive capacity expansion and model launch plans, which give us long-term earnings growth visibility. MSIL’s EV/EBITDA and EV/EBITDA premium to Hyundai India has reverted to historical averages and looks attractive to us,” analysts said with an outperform rating on MSIL with a target price of ₹19,920.
While Q4FY26 demand looks healthy, the company plans to reassess sustainable industry growth (earlier indicated at 7 per cent) in the coming months. Notably, first-time buyer mix has increased by 6–7 per cent, signaling a strong return of entry-level customers. On pricing, Maruti Suzuki has consciously avoided price hikes post-GST, prioritizing volume momentum and consumer benefit, despite rising input costs, analysts at ICICI Securities said.
With strong demand revival and market leadership, amidst healthy macroeconomic triggers in term of rationalisation of income tax rate, GST rate and 8th pay commission roll-out, exports & new launches, the brokerage firm maintains a BUY rating on the stock with target price of ₹17,650; valuing it at 30x PE on avg. of FY27E-28E EPS.
Meanwhile, the India–European (EU) Free Trade Agreement (FTA) is expected to make it easier for European automakers to introduce more premium and luxury models in India, but carmakers say consumers should not expect immediate price cuts.
The proposed India-EU auto agreement meaningfully lowers import duties only for a narrow set of EU completely built up (CBU) and completely knocked down (CKD) models, largely concentrated in the premium segments. Mass-market EU OEMs remain predominantly localized in India, with price cuts applying for a negligible volume share. Structural constraints such as limited dealer reach, timely availability of parts and higher ownership costs will restrict EU OEM competitiveness, according to analysts at Kotak Institutional Equities. Sharp correction in passenger vehicle (PV) OEMs is an overreaction, the brokerage firm said, adding they remain constructive on MSIL at current market price. Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.